Tata Power to dilute stake in holdings for funds

New Delhi: Tata Power, the country's largest private electricity generator, today said it will disinvest holdings or sell assets to funds expansion activities, estimated to cost Rs 6,000 crore.

The company estimates a requirement of Rs 6,000 crore to fund its projects under implementation, Tata Power said in a presentation.

The company would raise its power generation capacity to 12,861 MW by 2013.

Of the Rs 6,000 crore, Rs 2,900 crore would come from internal accruals and Rs 1,900 crore would be raised by issuing warrants and preferential shares.

The remainder would be raised through "disinvestment of various holdings or assets" and "equity dilution through warrants, preferential issue and rights if required," the company said.

The company would require Rs 24,000 crore till 2012. While Rs 6,000 crore would come from its own resources, Rs 18,000 crore would be raised through debt from domestic banks, institutions and capital markets.